Find the initial outlay for capital budgeting

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Reference no: EM1348891

A new machine can be purchased for $1,500,000. It will cost $45,000 to ship and $55,000 to fine tune the machine. The new machine will replace an older version that is fully depreciated and will be sold for $125,000. Te firms income tax rate is 40%. what is the initial outlay for capital budgeting.

A) $1,525,000
B) $1,600,000
C) $1,675,000
D) $1,725,000

Reference no: EM1348891

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